Apple's total cost to manufacture the iPhone 7 is $225

Apple's total cost to manufacture the iPhone 7 is around 18% more than the cost of the iPhone 6S.

Published Tue, Sep 27 2016 4:55 AM CDT   |   Updated Tue, Nov 3 2020 11:58 AM CST

Apple announced their new phones this month and the prices are as expected - the iPhone 7 starts at $649 and iPhone 7 Plus at $769. But, do you know how much Apple has to spend to manufacture those phones?

Apple's total cost to manufacture the iPhone 7 is $225 |

A report from IHS Markit, an analyst company based in London, shows that Apple's total cost to manufacture the iPhone 7 (32GB) is $224.80, which is around 18% more than the cost of the iPhone 6S.

"Total BOM (the bill of materials) costs for the iPhone 7 are more in line with what we have seen in teardowns of recent flagship phones from Apple's main competitor, Samsung, in that the costs are higher than in previous iPhone teardown analyses. All other things being equal, Apple still makes more margin from hardware than Samsung, but materials costs are higher than in the past", said Andrew Rassweiler, senior director of cost benchmarking services.

Although the costs of manufacturing increased, Apple decided to stick to the same price as the previous model. The iPhone 7 looks very similar to iPhone 6, which was announced two years ago, but Apple added new features - new Home button, new camera, new screen and processor, and the iPhone 7 is water resistant. While the costs increased, Apple showed they handle their expenses better than Samsung cause the cost to manufacture the Galaxy S7 is $255.05, and the retail price is very similar to the iPhone 7's.

IHS Markit has not yet performed a teardown analysis on the larger iPhone 7 Plus.


Lana has a passion for technology and science. She spends her time looking for the latest and most interesting technology and science news. Her passion is in gadgets, wearables, and other cool and interesting applications of technology or science. She also spends her free time gaming in MMOs like World of Warcraft. She has prior experience covering technology for publications and breaking news. If she’s not doing either, you might just find her exploring the metaverse in VR. Lana wants to expand TweakTown’s coverage of mobile, wearables and gadgets while also bringing her experience with science and general tech to TweakTown. Her area of coverage is around science, technology, smartphones, wearables, and general neat gadgets. She hopes to one day be able to drive around in her self-driving car while she schedules an appointment for a SpaceX trip to the moon on her smartwatch.

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